/raid1/www/Hosts/bankrupt/TCRLA_Public/151104.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, November 4, 2015, Vol. 16, No. 218
Headlines
B A R B A D O S
BARBADOS: Must Reduce Its Debt-to-GDP Ratio, says Central Bank
B E R M U D A
BUZZ: Shuts Three Self-Service Buffets
B R A Z I L
COMPANHIA SIDERURGICA: Moody's Lowers Rating to B1; Outlook Neg.
CSN ISLANDS XI: Moody's Cuts FC Rating to B1; Outlook Negative
PETROLEO BRASILEIRO: Strikers Paralyze 22 Platforms in Brazil
USINAS SIDERURGICAS: Moody's Cuts CFR to B2; Reviews for Downgrade
USIMINAS COMMERCIAL: Moody's Lowers Rating on Sr. Notes to B2
C A Y M A N I S L A N D S
ANDARI LTD: Sole Member to Hear Wind-Up Report on Nov. 24
CAMBER 5 LTD: Shareholder to Hear Wind-Up Report on Nov. 13
CEPHEUS FUND: Shareholder Receives Wind-Up Report
CHEYNE SOLUTIONS: Member to Hear Wind-Up Report on Nov. 5
CHEYNE STRUCTURED: Member to Hear Wind-Up Report on Nov. 5
CHEYNE STRUCTURED GENERAL: Member to Hear Wind-Up Report on Nov. 5
ELMABE COMPANY: Sole Member to Hear Wind-Up Report on Nov. 24
LSV MASTERS: Shareholders' Final Meeting Set for Nov. 5
LSV MASTERS ALPHA: Shareholders' Final Meeting Set for Nov. 5
LUCENDRO FUND: Shareholder Receives Wind-Up Report
MORTGAGE INSURANCE: Shareholder to Hear Wind-Up Report on Nov. 10
ODEBRECHT OFFSHORE: S&P Lowers Rating on Sr. Sec. Notes to 'B'
SHELF DRILLING: Moody's Lowers CFR to B1; Outlook Negative
TONGA INVESTMENTS: Sole Member to Hear Wind-Up Report on Nov. 24
TUSSEFJORDEN AIRFINANCE: Member to Hear Wind-Up Report on Nov. 24
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Merchants Protest Against Truckers' Protests
M E X I C O
ARENDAL S DE RL: S&P Affirms 'B-' CCR; Outlook Stable
P E R U
UNION ANDINA: S&P Affirms 'BB+' CCR; Outlook Stable
P U E R T O R I C O
AMERICAN AGENCIES: U.S. Trustee Objects to Cash Use Request
MINI MASTER: To Seek Confirmation of Reorganization Plan Dec. 15
T R I N I D A D & T O B A G O
POWERGEN: Confirms Port of Spain Power Plant Closure After Dec. 31
- - - - -
===============
B A R B A D O S
===============
BARBADOS: Must Reduce Its Debt-to-GDP Ratio, says Central Bank
--------------------------------------------------------------
Caribbean360.com reports that despite the dramatic improvement in
the tourism industry, especially a 14 per cent increase in long
stay arrivals so far this year, the Barbados economy grew by a
marginal 0.3 per cent for the first nine months of the year,
according to the Central Bank of Barbados, in its latest economic
press release.
The major reason has been the construction sector, which the bank
said "fell short of expectations" and the spin-off effect this had
on the retail and domestic services sectors, according to
Caribbean360.com.
The report notes that also holding back the economy were what the
bank termed "administrative issues" which had caused the emerging
photovoltaic systems sector to stall, with only a quarter of
around 8 megawatts of new capacity fully operational.
Net new foreign capital inflows were estimated at BDS$417 million
(US$208.5 million), down from BDS$542 million (US$271 million) a
year ago, while foreign income from services, including
international business and financial services, were on par with
last year, the report relays.
If you are hoping for some brighter news for the economy apart
from tourism's improvement, you won't find it in the growth of the
economy but in the decline of oil prices, Caribbean360.com
discloses. The country spent BDS$144 million (US$208.5 million),
or about 20 per cent less on fuel although the amount brought in
increased by 8 per cent, the report relays.
The lower cost of fuel -- a result of the global oil war now being
waged over who will command prices for the commodity in the future
-- not only saved Barbados foreign exchange, but lowered the cost
of living for everyone on the island, the report says.
The bank said, "The dramatic fall in payments for imported fuel
and lower commodity prices have had a major impact on Barbados'
inflation rate," relays the report.
It noted that while the average costs of domestic electricity and
fuel have declined one per cent per year in the past three years,
they had fallen by 20 per cent during the first seven months of
this year, says Caribbean360.com.
In addition, said the Central Bank, inflation in domestic food
prices fell by two per cent on average for the year ending July
2015, down from an average of four per cent between 2011 and 2014,
at what it termed "the height of the world commodity boom," the
report discloses.
Overall, for the first half of its current fiscal year, that is,
from April to September, the government deficit was BDS$19 million
(US$9.5 million) less than for the same period last year, the
report notes. This was mainly due to almost BDS$100 million
(US$50 million) more collected in property taxes, which were
increased to replace the estimated loss in revenue from the now-
repealed municipal solid waste tax, the report relays. It may be
remembered that the municipal solid waste tax was expected to
raise a total of just under BDS$50 million (US$25 million) over
its first year, the report adds.
Excise taxes rose by BDS$15 million (US$7.5 million), but receipts
from the VAT fell BDS$22 million (US$11 million), in part due to
industrial action at the Bridgetown Port, which the bank said,
delayed the clearing and processing of merchandise imports, says
Caribbean360.com.
And while the country is pinning its hopes for recovery on
tourism's resurgence, the bank warned that the growth experienced
this year was mainly due to what it termed "the significant
restoration of airlift capacity from North Atlantic markets last
winter season," and therefore the increases in long-stay arrivals
were not likely to continue at that pace, the report says.
However, it said, the cruise tourism business would get a major
boost from an expansion in the home-porting services at the
Bridgetown Port, the report discloses.
Overall, said the bank, "the principal factors affecting the near-
term growth outlook are the prospects for tourism and the
implementation of major private and Government-funded investment
projects," the report relays.
It also noted that Barbados' fiscal deficit continues to grow
faster than GDP, with interest costs amounting to 29 per cent of
all Government revenues, the report notes.
If the Government can lower its fiscal deficits to below the
growth rate of GDP, it could reverse the slide in the country's
international credit ratings, said the bank, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 16, 2015, Standard & Poor's Ratings Services affirmed its
'B' long-term sovereign credit ratings on Barbados. The outlook
remains negative. S&P also affirmed its 'B' short-term sovereign
credit ratings. The transfer and convertibility (T&C) assessment
is unchanged at 'B'.
=============
B E R M U D A
=============
BUZZ: Shuts Three Self-Service Buffets
--------------------------------------
Raymond Hainey at The Royal Gazette reports that restaurant chain
Buzz is to shut three self-service buffets due to lack of trade.
The self-service selections at the firm's outlets in the Esso City
gas station, the Hamilton Pharmacy and Pitts Bay Road in Pembroke
will all cease operations, according to The Royal Gazette.
The report relays that counter service will continue as normal at
all three locations.
The buffet service, however, will remain at the Buzz outlet in
Pembroke's Bakery Lane and in the AIG building in Hamilton, says
the report.
According to The Royal Gazette, Buzz Managing Director Holger
Eiselt said: "The volumes for the buffet are not strong enough --
the food is not turning over fast enough.
"The demand really isn't there. Our menu is quite extensive and
there are a lot of other menu items which are more popular," the
report quoted Mr. Eiselt as saying.
But Mr. Eiselt said that there were plans to replace the buffet
selection with another service, the report notes.
The Royal Gazette says Mr. Eiselt added: "We are going to replace
the buffet. There is a new concept that's going to be implemented
-- but I can't discuss it at the moment."
The report says Buzz opened its first restaurant in October 2005
on the first floor of Washington Mall in Hamilton. It now has a
total of 11 restaurants around the Island and employs more than 80
people.
A Buzz at Bermuda College opened in 2010, but later closed due a
drop in student numbers.
In 2013, Thomas Mayer, who at the time was general manager, said
the firm would focus on consolidation rather than expansion and
"refine our concept and offer people a healthier lifestyle,
especially the young ones," adds the report.
===========
B R A Z I L
===========
COMPANHIA SIDERURGICA: Moody's Lowers Rating to B1; Outlook Neg.
----------------------------------------------------------------
Moody's America Latina has downgraded Companhia Siderurgica
Nacional S.A. - CSN's global scale ratings to B1 from Ba2 and the
National Scale Rating (NSR) to Baa3.br from Aa3.br. The outlook
remains negative.
Ratings downgraded:
-- Issuer: Companhia Siderurgica Nacional S.A. - CSN
Corporate Family Rating (local currency): to B1 from Ba2 in the
global scale and to Baa3.br from Aa3.br in the national scale
The outlook for all ratings remains negative.
RATINGS RATIONALE
The downgrade reflects primarily the rapid deterioration in CSN's
credit metrics, which Moody's expects will persist at least until
2016, as a result of a much weaker fundamentals for the domestic
steel industry. In addition to that, global oversupply of steel
will constrain expansion of exports and the low price outlook for
iron ore will limit results from this segment. This, combined
with the impact of the devaluation of the Brazilian real on the
company's foreign currency debt, will lead to higher leverage and
low interest coverage metrics at least until 2016. Overtime,
though, we expect to see the benefit of higher export margins (for
steel and iron ore) on the company's metrics as well.
CSN's B1/Baa3.br rating reflects its position as a leading
manufacturer of flat-rolled steel in Brazil, with a favorable
product mix focused on value-added products. Historically, the
company has reported a strong EBITDA margin (as defined by
Moody's) in the 20-30% range, supported by its solid domestic
market position, wide range of products through different segments
and globally competitive production costs both in steel and iron
ore. Moreover, margins have been relatively high compared to
steel peers as mining benefited from higher iron prices in the
past few years. However, lower iron ore prices and the
challenging operating environment for steelmakers impacted CSN's
adjusted EBITDA margins, which declined from 44% in 2011 to 23.7%
in the last twelve months ended June 2015.
While Moody's believes that the company is better-positioned than
most of its global peers to face the ups and downs of the cyclical
steel industry from an operational standpoint, CSN's ratings are
primarily constrained by its weakened credit metrics, namely high
leverage, low interest coverage and deteriorated cash flow
metrics. In addition, the rating also incorporates the heightened
risks faced by the steel industry in Brazil due to the economic
contraction, tight credit availability and low business
confidence, which directly impact steel consuming industries such
as automotive, construction and consumer durables. Besides, the
deceleration in China's GDP growth and additional iron ore supply
coming online at a lower cost basis will continue to pressure iron
ore prices. The ratings acknowledge the company's announced
efforts to reduce leverage and liquidity risks in the short to
medium term, such as the renegotiation of debt maturing in 2016
and 2017 with local banks recently concluded and the planned asset
divestitures.
The negative outlook continues to reflect our expectations that
market conditions for steel producers in Brazil and iron ore
producers globally will remain challenging, with further risk to
the downside, and that credit metrics will likely remain pressured
for the next 12 to 18 months.
The ratings could suffer additional negative pressure if the
company is unable to reduce its leverage, and interest coverage
(measured by EBIT to interest) stays at levels below 2.0x on a
sustained basis. A marked deterioration in the company's
liquidity position could also precipitate a downgrade. Downward
pressure could also affect the ratings or outlook should
conditions in key markets for CSN, such as automotive,
construction and home appliances, remain weak, further limiting
CSN's ability to generate positive free cash flow or if limited
flexibility for capex and dividend reduction is observed.
Although unlikely in the near term given the challenges faced by
CSN and its main operations markets, an upward rating movement
would require that CSN maintains a strong liquidity position and
leverage trending towards 4.0x total adjusted debt to Ebitda, with
interest coverage ratios above 3.0x on a sustainable basis. In
addition, a sustainable (cash from operations less dividends) to
debt ratio of at least 15% as well as a less concentrated
operational risk profile would be further considerations in a
rating upgrade or outlook change.
Companhia Siderurgica Nacional ("CSN") is a vertically integrated,
low-cost producer of flat-rolled steel, long-steel, iron ore and
cement. With an annual capacity of 6.7 million tons of crude
steel, 6.0 million tons of rolled products and 1.6 million tons of
long steel, CSN sells its products to a broad array of industries,
including the automotive, capital goods, packaging, construction
and home appliance sectors. CSN owns and operates cold rolling
and galvanizing facilities in the U.S. and long steel assets in
Germany, besides substantial iron ore, limestone, dolomite and tin
reserves, railroads, port terminals and power generation assets.
In the last twelve months ended June 2015, CSN reported
consolidated net revenues of BRL 15.4 billion (USD 5.7 billion
converted at the average exchange rate).
CSN ISLANDS XI: Moody's Cuts FC Rating to B1; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has downgraded to B1 from Ba2 the
foreign currency rating assigned to the senior unsecured notes of
CSN Islands XI Corporation, CSN Islands XII Corporation and CSN
Resources S.A. that are guaranteed by Companhia Siderurgica
Nacional (CSN). At the same time, Moody's America Latina
downgraded CSN's global scale rating to B1 and the National Scale
Rating (NSR) to Baa3.br from Aa3.br. The outlook remains
negative.
Ratings downgraded:
-- Issuer: CSN Islands XI Corporation
USD 750 million 6.875% Senior Unsecured Notes Due 2019: to B1
from Ba2
-- Issuer: CSN Islands XII Corporation (Cayman Islands)
USD 1 billion 7.0% Senior Unsecured Perpetual Notes: to B1 from
Ba2
-- Issuer: CSN Resources S.A. (Luxembourg)
USD 1.2 billion 6.5% Senior Unsecured Notes Due 2020: to B1 from
Ba2
The outlook for all ratings remains negative.
RATINGS RATIONALE
The downgrade reflects primarily the rapid deterioration in CSN's
credit metrics, which Moody's expects will persist at least until
2016, as a result of a much weaker fundamentals for the domestic
steel industry. In addition to that, global oversupply of steel
will constrain expansion of exports and the low price outlook for
iron ore will limit results from this segment. This, combined
with the impact of the devaluation of the Brazilian real on the
company's foreign currency debt, will lead to higher leverage and
low interest coverage metrics at least until 2016. Overtime,
though, we expect to see the benefit of higher export margins (for
steel and iron ore) on the company's metrics as well.
CSN's B1 rating reflects its position as a leading manufacturer of
flat-rolled steel in Brazil, with a favorable product mix focused
on value-added products. Historically, the company has reported a
strong EBITDA margin (as defined by Moody's) in the 20-30% range,
supported by its solid domestic market position, wide range of
products through different segments and globally competitive
production costs both in steel and iron ore. Moreover, margins
have been relatively high compared to steel peers as mining
benefited from higher iron prices in the past few years. However,
lower iron ore prices and the challenging operating environment
for steelmakers impacted CSN's adjusted EBITDA margins, which
declined from 44% in 2011 to 23.7% in the last twelve months ended
June 2015.
While Moody's believes that the company is better-positioned than
most of its global peers to face the ups and downs of the cyclical
steel industry from an operational standpoint, CSN's ratings are
primarily constrained by its weakened credit metrics, namely high
leverage, low interest coverage and deteriorated cash flow
metrics. In addition, the rating also incorporates the heightened
risks faced by the steel industry in Brazil due to the economic
contraction, tight credit availability and low business
confidence, which directly impact steel consuming industries such
as automotive, construction and consumer durables. Besides, the
deceleration in China's GDP growth and additional iron ore supply
coming online at a lower cost basis will continue to pressure iron
ore prices. The ratings acknowledge the company's announced
efforts to reduce leverage and liquidity risks in the short to
medium term, such as the renegotiation of debt maturing in 2016
and 2017 with local banks recently concluded and the planned asset
divestitures.
The negative outlook continues to reflect our expectations that
market conditions for steel producers in Brazil and iron ore
producers globally will remain challenging, with further risk to
the downside, and that credit metrics will likely remain pressured
for the next 12 to 18 months.
The ratings could suffer additional negative pressure if the
company is unable to reduce its leverage, and interest coverage
(measured by EBIT to interest) stays at levels below 2.0x on a
sustained basis. A marked deterioration in the company's
liquidity position could also precipitate a downgrade. Downward
pressure could also affect the ratings or outlook should
conditions in key markets for CSN, such as automotive,
construction and home appliances, remain weak, further limiting
CSN's ability to generate positive free cash flow or if limited
flexibility for capex and dividend reduction is observed.
Although unlikely in the near term given the challenges faced by
CSN and its main operations markets, an upward rating movement
would require that CSN maintains a strong liquidity position and
leverage trending towards 4.0x total adjusted debt to Ebitda, with
interest coverage ratios above 3.0x on a sustainable basis. In
addition, a sustainable (cash from operations less dividends) to
debt ratio of at least 15% as well as a less concentrated
operational risk profile would be further considerations in a
rating upgrade or outlook change.
Companhia Siderurgica Nacional is a vertically integrated, low-
cost producer of flat-rolled steel, long-steel, iron ore and
cement. With an annual capacity of 6.7 million tons of crude
steel, 6.0 million tons of rolled products and 1.6 million tons of
long steel, CSN sells its products to a broad array of industries,
including the automotive, capital goods, packaging, construction
and home appliance sectors. CSN owns and operates cold rolling
and galvanizing facilities in the U.S. and long steel assets in
Germany, besides substantial iron ore, limestone, dolomite and tin
reserves, railroads, port terminals and power generation assets.
In the last twelve months ended June 2015, CSN reported
consolidated net revenues of BRL 15.4 billion (USD 5.7 billion
converted at the average exchange rate).
PETROLEO BRASILEIRO: Strikers Paralyze 22 Platforms in Brazil
----------------------------------------------------------
EFE News reports that Brazil's oil workers began an indefinite
strike to protest against a disinvestment plan by the scandal-hit
state-run Petrobras oil company that is facing serious cash flow
problems.
Trade union sources told EFE News the strike was backed by close
to 70 percent of the members of FUP, Brazil's main petroleum
workers union, and more are expected to join.
In a separate report, EFE News says oil workers said they had
stopped all operations at 22 of the oil giant's 44 rigs in the
Campos basin, an offshore area that accounts for about 80 percent
of the country's oil output.
The strike had spread to 34 of Petrobras's rigs in the basin and
22 "are totally paralyzed," the FUP, the largest union in Brazil's
oil industry, said in a statement obtained by EFE News.
The report notes that seven other rigs affected by the strike are
operating partially and the remaining five were handed over to
emergency teams dispatched by the company to prevent a production
shutdown.
The workers "at only 10 of the rigs in the Campos basin abstained
from joining the movement," the FUP said, according to EFE News.
The report relays that the status of the strike in the Campos
basin was reported by Sindipetro-NF, one of the unions affiliated
with the FUP.
The labor federation called for a nationwide strike to protest a
plan to sell Petrobras assets and the temporary suspension of
construction at important facilities, such as the Abreu e Lima
refinery, the report says.
Petrobras, Brazil's largest company, has been mired in a massive
corruption scandal and has written off nearly $2 billion in
corruption-related losses from the period between 2004 and 2014,
the report relays.
About Petroleo Brasileiro
Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. --
Petrobras (Brazilian Petroleum Corporation) -- explores for oil
and gas and it produces, refines, purchases, and transports oil
and gas products. The Company has proved reserves of about 14.1
billion barrels of oil equivalent and operates 16 refineries, an
extensive pipeline network, and more than 8,000 gas stations.
The Troubled Company Reporter-Latin America reported on March 6,
2015, that the deepening investigation into the alleged kickback
scheme at Petrobras has triggered concerns for the Brazilian banks
with exposures not only to the state-controlled oil company, but
also to its large base of suppliers, as well as the broader oil
and gas (O&G) and construction industries, says Moody's Investors
Service.
On March 12, 2015, the TCR-LA reported that Moody's Investors
Service said the corruption investigation into Petrobras will
negatively affect parts of the public and private sectors, but
government support for the company is likely to help contain the
credit-negative impact.
Moody's Investors Service has downgraded all ratings for
Petrobras, including a downgrade of the company's senior unsecured
debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating
to the company, the TCRLA reported on Feb. 27, 2015. Its failure
to estimate its losses from the alleged corruption scheme and
produce audited third-quarter results prompted Moody's to cut its
rating to junk, the report said.
Rival agency Standard & Poor's delivered a further blow on March
23 when it revised its outlook on the company from stable to
negative, the TCRLA reported on March 26, 2015.
On Feb. 10, 2015, TCRLA said Fitch Ratings has downgraded the
foreign and local currency Issuer Default Ratings (IDRs) and
outstanding debt ratings of Petrobras to 'BBB-' from 'BBB'.
Concurrently, Fitch has placed all of Petrobras' international and
national scale ratings on Rating Watch Negative.
USINAS SIDERURGICAS: Moody's Cuts CFR to B2; Reviews for Downgrade
------------------------------------------------------------------
Moody's America Latina has downgraded Usinas Siderurgicas de Minas
Gerais S.A. ("Usiminas") corporate family ratings to B2 from Ba3
(global scale) and to Ba2.br from A2.br (national scale). At the
same time, Moody's placed the ratings on review for further
downgrade. The B2/Ba2.br rating level has historically been
associated with default frequencies of 3.4% and 13.9% over 1-year
and 3-year investment horizons, respectively.
Ratings downgraded:
Issuer: Usinas Siderurgicas de Minas Gerais S.A.
-- Corporate Family Rating: B2 (from Ba3) in the global scale
and Ba2.br (from A2.br) in the national scale
The ratings are on review for further downgrade.
RATINGS RATIONALE
The downgrade to B2 reflects primarily the rapid and fierce
deterioration in Usiminas' operating performance through 2015,
which we expect will persist through 2016, as a result of timid
economic growth and struggling industrial activity in Brazil, as
well as much weaker fundamentals for the domestic steel industry.
Furthermore, global oversupply of steel will constrain exports'
profitability. Despite the cost saving initiatives and downsize
of operations currently carried out by the company, we believe
Usiminas will continue to face challenges related to the slowdown
of domestic demand for steel, which can lead to a long period of
constrained cash generation. This, combined with the impact of
the devaluation of the Brazilian real on the company's foreign
currency debt (about 48% of total debt) and on its costs will
result in continued weak credit metrics in 2015-16. The rating
action reflects concern about potential liquidity pressures that
could arise if Usiminas is not able to negotiate waivers with debt
holders for the financial covenants by the end of 2015.
Usiminas' ratings remain on review for possible downgrade,
reflecting continued concern about potential liquidity pressures
that could arise as a consequence of breaching financial covenants
or not being able to meet its short-term financial obligations.
The majority of the company's debt agreements include covenants
that will not be met in the end of 2015, which brings the risk
that creditors may take actions that could eventually lead to
payment acceleration.
The review process will focus on Usiminas' ability to negotiate
waivers with creditors at reasonable costs to avoid liquidity
shortfalls. Additional rating actions can be considered if
Usiminas fails to renegotiate covenants or is unable to meet its
financial obligations on a timely basis.
Headquartered in Belo Horizonte, Minas Gerais, Usinas Siderurgicas
de Minas Gerais S.A. - Usiminas is the largest integrated flat-
steel manufacturer in Latin America, with production of 5.3
million tons of crude steel and consolidated net revenues of BRL
10.4 billion (approximately USD 3.5 billion converted by the
average exchange rate) for the LTM period ending Sept. 30, 2015.
Usiminas also owns iron ore mining properties, steel distribution
and capital goods subsidiaries in Brazil.
USIMINAS COMMERCIAL: Moody's Lowers Rating on Sr. Notes to B2
-------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of the senior
unsecured notes issued by Usiminas Commercial Ltd. (guaranteed by
Usinas Siderurgicas de Minas Gerais, "Usiminas") to B2 from Ba3
and the ratings of the backed senior unsecured global MTN programs
of Usinas Siderurgicas de Minas Gerais S.A., Cosipa Commercial Ltd
and Usiminas Commercial Ltd to (P) B2 from (P) Ba3. At the same
time, Moody's placed the ratings on review for further downgrade.
Simultaneously, Moody's America Latina downgraded Usiminas's
global scale rating to B2 and the National Scale Rating to Ba2.br
from A2.br and placed the ratings on review for further downgrade.
Ratings downgraded:
Issuer: Usinas Siderurgicas de Minas Gerais S.A.
-- USD500 mil. backed senior unsecured Global MTN Program: to
(P) B2 from (P) Ba3
Issuer: Cosipa Commercial Ltd.
-- USD500 mil. backed senior unsecured Global MTN Program: to
(P) B2 from (P) Ba3
Issuer: Usiminas Commercial Ltd.
-- USD400 mil. senior unsecured notes due 2018, guaranteed
by Usiminas: to B2 from Ba3
-- USD500 mil. backed Global MTN Program: to (P) B2 from
(P) Ba3
The ratings are on review for further downgrade.
RATINGS RATIONALE
The downgrade to B2 reflects primarily the rapid and fierce
deterioration in Usiminas' operating performance through 2015,
which Moody's expects will persist through 2016, as a result of
timid economic growth and struggling industrial activity in
Brazil, as well as much weaker fundamentals for the domestic steel
industry. Furthermore, global oversupply of steel will constrain
exports' profitability. Despite the cost saving initiatives and
downsize of operations currently carried out by the company, we
believe Usiminas will continue to face challenges related to the
slowdown of domestic demand for steel, which can lead to a long
period of constrained cash generation. This, combined with the
impact of the devaluation of the Brazilian real on the company's
foreign currency debt (about 48% of total debt) and on its costs
will result in continued weak credit metrics in 2015-16. The
rating action reflects concern about potential liquidity pressures
that could arise if Usiminas is not able to negotiate waivers with
debt holders for the financial covenants by the end of 2015.
Usiminas' ratings remain on review for possible downgrade,
reflecting continued concern about potential liquidity pressures
that could arise as a consequence of breaching financial covenants
or not being able to meet its short-term financial obligations.
The majority of the company's debt agreements include covenants
that will not be met in the end of 2015, which brings the risk
that creditors may take actions that could eventually lead to
payment acceleration.
The review process will focus on Usiminas' ability to negotiate
waivers with creditors at reasonable costs to avoid liquidity
shortfalls. Additional rating actions can be considered if
Usiminas fails to renegotiate covenants or is unable to meet its
financial obligations on a timely basis.
Headquartered in Belo Horizonte, Minas Gerais, Usinas Siderurgicas
de Minas Gerais S.A. - Usiminas (Usiminas) is the largest
integrated flat-steel manufacturer in Latin America, with
production of 5.3 million tons of crude steel and consolidated net
revenues of BRL10.4 bil. (approximately USD3.5 bil. converted by
the average exchange rate) for the LTM period ending Sept. 30,
2015. Usiminas also owns iron ore mining properties, steel
distribution and capital goods subsidiaries in Brazil.
==========================
C A Y M A N I S L A N D S
==========================
ANDARI LTD: Sole Member to Hear Wind-Up Report on Nov. 24
---------------------------------------------------------
The sole member of Andari Ltd. will hear on Nov. 24, 2015, at
10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town Tortola VG1110
British Virgin Islands
CAMBER 5 LTD: Shareholder to Hear Wind-Up Report on Nov. 13
-----------------------------------------------------------
The shareholder of Camber 5 Ltd will hear on Nov. 13, 2015, at
10:15 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
CEPHEUS FUND: Shareholder Receives Wind-Up Report
-------------------------------------------------
The shareholder of Cepheus Fund Limited received on Nov. 3, 2015,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Richard Fear
c/o Ryan Charles
Telephone: (345) 814 7364
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
CHEYNE SOLUTIONS: Member to Hear Wind-Up Report on Nov. 5
---------------------------------------------------------
The member of Cheyne Solutions Limited will hear on Nov. 5, 2015,
at 10:10 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Jo-Anne Maher
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 814 9255
Facsimile: (345) 949 4647
CHEYNE STRUCTURED: Member to Hear Wind-Up Report on Nov. 5
----------------------------------------------------------
The member of Cheyne Structured Solutions Fund Inc. will hear on
Nov. 5, 2015, at 10:05 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Jo-Anne Maher
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 814 9255
Facsimile: (345) 949 4647
CHEYNE STRUCTURED GENERAL: Member to Hear Wind-Up Report on Nov. 5
------------------------------------------------------------------
The member of Cheyne Structured Solutions General Partner Limited
will hear on Nov. 5, 2015, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
c/o Jo-Anne Maher
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 814 9255
Facsimile: (345) 949 4647
ELMABE COMPANY: Sole Member to Hear Wind-Up Report on Nov. 24
-------------------------------------------------------------
The sole member of Elmabe Company Ltd. will hear on Nov. 24, 2015,
at 10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town Tortola VG1110
British Virgin Islands
LSV MASTERS: Shareholders' Final Meeting Set for Nov. 5
-------------------------------------------------------
The shareholders of LSV Masters International, Ltd. will hold
their final meeting on Nov. 5, 2015, at 10:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
LSV Advisors, LLC
540 Madison Avenue 33rd Floor
New York, New York 10022
United States of America
Telephone: +1 (212) 378 3700
LSV MASTERS ALPHA: Shareholders' Final Meeting Set for Nov. 5
-------------------------------------------------------------
The shareholders of LSV Masters Alpha International, Ltd. will
hold their final meeting on Nov. 5, 2015, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
LSV Advisors, LLC
540 Madison Avenue 33rd Floor
New York, New York 10022
United States of America
Telephone: +1 (212) 378 3700
LUCENDRO FUND: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Lucendro Fund SPC received on Nov. 2, 2015, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Nicola Smith
Telephone: +350 200 52545
Facsimile: +350 200 52546
Suite 209 Neptune House
Marina Bay, Gibraltar
MORTGAGE INSURANCE: Shareholder to Hear Wind-Up Report on Nov. 10
-----------------------------------------------------------------
The shareholder of Mortgage Insurance Limited will hear on
Nov. 10, 2015, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Johannes S. De Jager
Cayman Management Ltd.
Harbour Centre, Ground Floor
42 North Church Street George Town
P.O. Box 1569 Grand Cayman KY1-1110
Cayman Islands
Telephone: +1 (345) 949 4018
Facsimile: +1 (345) 949 7891
ODEBRECHT OFFSHORE: S&P Lowers Rating on Sr. Sec. Notes to 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on OODFL's
(or the project's) senior secured notes to 'B' from 'B+'. The
rating remains on CreditWatch negative.
The downgrade reflects S&P's belief that OODFL's financial
performance will continue to lag below S&P's previous
expectations, resulting in lower cash flow available for debt
service (CAFDS) in the upcoming years in light of the recent
termination of one of its charter and service contracts.
It also reflects S&P's reassessment of the project's:
-- Market risk exposure and competitive position because ODN
Tay IV vessel will be now exposed to the difficult global
drilling industry conditions following the plunge of oil
prices; and
-- The fair structural protection analysis due to the absence
of a forward-looking distribution test.
In respect to the latter factor, S&P previously assumed that the
risk to operations was mitigated by its view of the stable and
predictable cash flow that the four operating assets generate
under long-term charter and service contracts and by additional
liquidity reserves (including the 'Offshore Balloon Retention
Account' and the 'Offshore Charter Termination Account,' which
were created for additional cushion starting in Sept. 2016).
Nevertheless, S&P now expects a more volatile cash flow generation
and a decrease in the reserve account amounts.
S&P don't envision an imminent risk of default because it believes
with the cash flows from the three contracted assets and the
reserve accounts in place, the project could survive for more than
two years.
The CreditWatch negative listing reflects the risk of triggering a
non-automatic event of default by Dec. 21, 2015 (90 days after the
termination event occurred) if OOG can't recontract ODN Tay IV in
similar economic conditions by that date, which would likely
result in a multiple-notch downgrade. The CreditWatch also
reflects the risk of a potential renegotiation of OODFL's notes to
absorb the impact of expected lower CFADS, which could result in a
rating action, depending on the proposed conditions. S&P could
resolve the CreditWatch listing within the next 50 days if OOG is
able to recontract the vessel at satisfactory conditions with a
creditworthy counterparty, raising the minimum debt service
coverage ratio again above 1.2x.
SHELF DRILLING: Moody's Lowers CFR to B1; Outlook Negative
----------------------------------------------------------
Moody's Investors Service took a number of rating actions on Shelf
Drilling Midco, Ltd. and Shelf Drilling Holdings, Ltd. Moody's
downgraded Midco's Corporate Family Rating (CFR) to B1 from Ba3,
its Probability of Default Rating (PDR) to B1-PD from Ba3-PD and
its senior secured term loan rating to B2 from B1. At the same
time, Moody's downgraded Holdings' senior secured notes rating to
B1 from Ba3. The outlook on all ratings is negative. The
Speculative Grade Liquidity Rating of SGL-2 has been withdrawn.
This concludes the rating review that was initiated on 24 August
2015.
"The downgrade and negative outlook reflect the increased pressure
on Shelf Drilling's utilisation and day rates in the current
deteriorating offshore drilling market, which will result in a
substantial weakening of the company's leverage and interest
coverage metrics that will increase refinancing risk ahead of
Midco's USD350 million senior loan maturing in October 2018 and
Holding's USD475 million senior notes maturing in November 2018",
says Julien Haddad, a Moody's Analyst. "We also expect negative
free cash flow in 2016 and 2017 due to USD256 million of newbuild
capex, although this will be financed with new committed
financing"
RATINGS RATIONALE
Moody's expects sustained low oil prices and reduced upstream opex
spending to cause a protracted downturn in the offshore contract
drilling industry. Even if rig demand stabilizes, day rates will
remain under intense pressure through 2017 due to an overabundance
of rigs in the jackup market. There are over 110 new jackups that
are scheduled for delivery over the next few years. Even if only
half of those planned newbuilds eventually go into service, global
supply could still increase by 10%-15% above today's active and
marketed fleet, promising little hope for tighter rig
supply/demand in the near future. In this context, Shelf Drilling
lowered some of its day rates with key customers throughout 2015
and 2016 to ensure long term commercial relationships. Some of
these reductions were compensated by longer contract terms and
contractual pricing step-ups.
The rating agency also expects Shelf Drilling's rigs to sign
contracts at significantly lower rates when current contracts
expire. Moreover, some rigs could experience extended delays
prior to securing a new contract given the extremely competitive
bidding environment for offshore drilling jobs globally.
During 2015, Shelf Drilling's management improved operating
performance and reduced costs by embarking on a cost optimization
program which Moody's expects will result in a decrease of the
average operating cost per rig to ca. $43K per day for 2015 from
$52.5K a year earlier. Nevertheless, lower dayrates and weaker
utilisation will result in a deterioration of Shelf Drilling's
profitability, leverage and interest coverage metrics with debt to
EBITDA exceeding 4.0x and EBITDA to interest expense decreasing to
below 3.0x in 2017. Furthermore, the rating agency expects Shelf
Drilling to generate negative free cash flow over the course of
2016 and 2017 due to the USD256 million of new build capex,
although this will be financed with new committed financing
following the sale and lease back transaction the company signed
in October 2015. This, combined with the uncertainty regarding
future earning power and the company's sizeable debt maturities in
2018 were key drivers for the downgrade.
Shelf's B1 ratings reflect (1) the company's strong liquidity
position with USD45 million of cash balances as of June 2015 and
USD200 million of unused committed RCF; (2) Shelf Drilling's
revenue and cash flow diversification across a number of
geographies with blue-chip companies. As of Sept. 2015, ca. two
thirds of Shelf Drilling's operating rigs are under contract with
significant National Oil Companies (NOCs) and major Integrated Oil
Companies (IOCs); (3) non-speculative build strategy of the
company with two new builds expected to be delivered in Q4 2016
and Q2 2017 backed by five-year contracts from Chevron Corporation
(Aa1 stable); (4) the company's health and safety track record;
and (5) Moody's expectation of no dividend distribution in 2015
and 2016, reflecting the shareholders' attitude towards conserving
cash in the business in light of the challenging operating
environment.
The B2 rating on Midco's senior secured term loan reflects its
structurally subordinated claim to the rig assets, behind the $200
million senior secured first-lien revolver and $475 million senior
secured second-lien notes at Holdings, which directly owns all the
operating rig companies. Midco's term loan does not have any
upstream guarantee from Holdings. The 8.625% secured notes at
Holdings are rated B1 despite having significant amount of
structurally subordinated Midco debt in the capital structure.
The Midco term loan matures ahead of the Holdings notes and could
be repaid earlier leaving limited loss absorption cushion to
lenders at Holdings. Accordingly, we believe that the B1 rating
is more appropriate for the 8.625% notes than the rating of Ba3
suggested by the Moody's LGD Methodology.
RATIONALE FOR NEGATIVE OUTLOOK
The negative outlook reflects the weak offshore drilling
environment and the uncertainty regarding the duration of this
downturn and the potential that leverage could rise substantially
as the contract backlog rolls off.
WHAT WOULD CHANGE THE RATING UP/DOWN
Given the negative outlook on the ratings, an upgrade is unlikely
at this stage. The outlook on the ratings could be changed to
stable if the company is able to re-contract rigs as they roll-off
and to find new contracts for its available rigs such that debt to
EBITDA were to remain below 3.0x on a sustained basis.
Shelf Drilling's ratings could be downgraded if debt to EBITDA
were to increase to above 4.0x. any loss of contracts could also
lead to a downgrade of Shelf Drilling's ratings.
Shelf Drilling Midco, Ltd. is a Cayman Islands incorporated
holding company that owns all of the equity interest in Shelf
Drilling Intermediate, LTD., which in turn owns 100% of Shelf
Drilling Holdings. Ltd. Holdings owns 37 independent-leg
cantilever jackup rigs and one swamp barge rig, and through
various subsidiaries conducts drilling operations in the Southeast
Asia, Middle East, India, West Africa and North Africa /
Mediterranean markets.
The Local Market analyst for this rating is Julien Haddad, 9714-
237-9539.
TONGA INVESTMENTS: Sole Member to Hear Wind-Up Report on Nov. 24
----------------------------------------------------------------
The sole member of Tonga Investments Limited will hear on Nov. 24,
2015, at 10:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Lion International Management Limited
Craigmuir Chambers
Road Town Tortola VG1110
British Virgin Islands
TUSSEFJORDEN AIRFINANCE: Member to Hear Wind-Up Report on Nov. 24
-----------------------------------------------------------------
The member of Tussefjorden Airfinance Limited will hear on
Nov. 24, 2015, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 943-3100
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Merchants Protest Against Truckers' Protests
----------------------------------------------------------------
Dominican Today reports that merchants parked trucks to block
access to the binational market at Jimani township (west) for
several hours at the Mal Paso border crossing, to protest against
truckers.
Elvis Perez, head of Jimani's local merchants association said the
protest that halted freight traffic into Haitian territory was
staged because truckers are hurting their businesses by hauling
director into Haiti, and with their own protests, according to
Dominican Today.
After the standoff that lasted several hours, National Police and
Border Security Corps (Cesfront) agents reopened the access to the
market as calm returned, with brisk sales between Haitians and
Dominicans, the report relays.
The report notes that Mr. Perez added that the truckers should
find a way to protest without hurting their sales.
* * *
As reported in Troubled Company Reporter-Latin America on May 22,
2015, Standard & Poor's Ratings Services raised its long-term
sovereign credit ratings on the Dominican Republic (DR) to 'BB-'
from 'B+'.
The outlook is stable. At the same time, S&P affirmed the 'B'
short-term rating. S&P also raised its transfer and
convertibility (T&C) assessment to 'BB+' from 'BB'.
===========
M E X I C O
===========
ARENDAL S DE RL: S&P Affirms 'B-' CCR; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B-'
global scale corporate credit rating on Arendal S. de R.L. de C.V.
At the same time, S&P affirmed its 'B-' global scale issue-level
rating on its $100 million senior unsecured notes due 2016 with a
recovery rating of '4L' (30%- 50%, in the lower band of the
range). The outlook is stable.
The stable outlook still reflects S&P's expectation that Arendal;s
backlog will further strengthen during the next 12 to 18 months,
allowing it to increase its cash generation and somewhat reduce
the refinancing risk on its bullet notes due 2016. It also
reflects S&P's expectation that the company will be able to
mitigate the refinancing risk by seeking out and acquiring
alternative funding, while normalizing public spending for the
following two years and continuing upcoming projects related to
the Mexican energy reform.
S&P could lower the rating if it perceives that the company will
be unable to face its maturities in 2016, particularly those
related to the bullet notes, which could result from potential
delays in obtaining or executing new projects with a consequent
impact on cash flow generation and a worsening of S&P's liquidity
assessment.
An upgrade is unlikely in the short term because the business risk
profile constrains the rating and also because an upgrade would
likely depend on the company significantly strengthening its
backlog and improving credit metrics to levels more commensurate
with a "significant" financial risk profile, with debt to EBITDA
below 4.0x and FFO to debt above 20% on a consistent basis. S&P
could also consider an upgrade if the company significantly
improves its liquidity, allowing it to further strength its
backlog and cash flow generation.
=======
P E R U
=======
UNION ANDINA: S&P Affirms 'BB+' CCR; Outlook Stable
---------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
corporate credit and issue-level ratings on Union Andina de
Cementos S.A.A. y Subsidiarias (UNACEM). The outlook on the
corporate credit rating remains stable.
UNACEM's fair business risk profile reflects its leading market
position in the cement industry in Peru, where it holds a 51%
market share in the national territory, and the favorable market
fundamentals for cement, given the likelihood of ongoing demand
growth for home self-construction and infrastructure projects.
S&P takes into account the company's recognized brand name, its
established and extensive distribution network, and its vertical
integration, all of which support a high level of operating
efficiency, a low and flexible cost base, and an above average
EBITDA margin for the industry.
However, S&P believes that these strengths are somewhat
constrained by the company's limited scale of operations compared
to global peers and its geographic concentration in the central
region of Peru, where the company bases its core business.
Moreover, S&P believes that the company continues to show limited
asset diversification--most of its revenues are generated from its
Atocongo and Concordocha plants--and some exposure to country risk
related to its recent acquisition in Ecuador.
The stable outlook reflects S&P's view that UNACEM will post solid
double-digit revenue growth and a gradual improvement in its
EBITDA margin, supported by the integration of its operations in
Ecuador and the favorable market environment in Peru, due to the
high pipeline of infrastructure projects and extensive housing
deficit, particularly in Lima. S&P also expects UNACEM to keep
posting positive FOCF generation, which will support a gradual
deleveraging of the company with debt-to-EBITDA, FFO-to-debt, and
FOCF-to-debt ratios of 3.9x, 17.6%, and 10.4%, respectively, by
year end 2015.
S&P could lower the ratings if the company's sales growth and
profitability levels are lower than anticipated as a result of
unexpected adverse market conditions in its domestic market. S&P
could also lower the ratings if the company adopts an aggressive
debt-financed acquisition strategy that leads to a debt to EBITDA
ratio above 4.0x on a consistent basis, or if it uses its cash for
acquisitions, boosts capex, or fails to refinance its debt
effectively, resulting in a weakening of its liquidity.
Although unlikely in the 12 to 18 months, S&P could raise the
ratings if UNACEM successfully increases its scale of operation
and expands its geographic diversification without weakening its
credit metrics and liquidity. A positive rating action is also
possible if UNACEM posts a debt-to-EBITDA ratio of less than 3.0x
and FOCF-to-debt of more than 15% on a consistent basis, as a
result of higher-than-expected operating performance, with an
EBITDA margin of 48% and controlled working capital requirements
and capex.
=====================
P U E R T O R I C O
=====================
AMERICAN AGENCIES: U.S. Trustee Objects to Cash Use Request
-----------------------------------------------------------
Guy G. Gebhardt, Acting United States Trustee for Region 21,
objects to the joint stipulation for use of cash collateral and
adequate protection among secured creditor Banco Popular de Puerto
Rico (BPPR), American Agencies Co., Inc. and New Steel, Inc.
The U.S. Trustee asserts that the the Stipulation fails to comply
with P.R. LBR 4001-2(a), inasmuch as it does not include "a self-
contained, proposed form of order," nor does it state "the value
of the collateral that secures the creditor's asserted interest."
The U.S. Trustee also complains that the Amended Budget also does
not comply with P.R. LBR 4001-2(a), inasmuch as it does not
provide for "carve-outs for United States trustee . . . fees."
The U.S. Trustee further objects to any alleged agreement to
impose any limitation to the rights and/or scope of the statutory
duties, powers and/or responsibilities pursuant to the Bankruptcy
Code and/or applicable rules of "any party in interest," including
the United States Trustee, and any subsequent Chapter 7 or Chapter
11 trustee, or examiner.
In the stipulation, the BPPR consents to the Debtors' use of
BPPR's cash collateral to satisfy their operating expenses
commencing as of the Petition Date and ending on March 15, 2016,
or the date that a plan is confirmed, whichever date is the
earliest. According to the parties, it is critical and necessary
to provide and assure the continuity of the Debtors' business,
payment of operational expenses, and the preservation of the going
concern value of the Debtors' estate.
As adequate protection for BPPR for the use of the Cash
Collateral, the Debtors agree to pay to BPPR the monthly
installments of $16,670. In addition, as adequate protection for
BPPR, the Debtors grant to BPPR a replacement lien and a post-
petition security interest on all of the assets of the same type
of property of the estate against which BPPR held liens as of the
Petition Date, which are acquired by the Debtors, on and after the
Petition Date.
Moreover, the Debtors agree that, upon any consummation of any
sale of substantially all or any of the Debtors' assets securing
the obligations under the loan documents or upon the effective
date of a plan confirmed by the Debtors, whichever comes first,
all of the Net Proceeds of the sale will be paid immediately and
indefeasibly to BPPR for its benefit at the closing of the sale in
an amount equivalent to the outstanding balance of the Loans at
that time, including any post-petition interest and/or charges
that may have secured in accordance with the loan documents and
the bankruptcy code.
The Debtors are represented by:
Luisa S. Valle Castro, Esq.
C.CONDE & ASSOC.
254 San Jose Street, 5th Floor
Old San Juan, Puerto Rico 00901
Tel: (787) 729-2900
Fax: (787) 729-2203
Email: ls.valle@condelaw.com
Guy G. Gebhardt, Acting United States Trustee for Region 21, is
represented by:
Julio Guzman-Carcache, Esq.
THE UNITED STATES TRUSTEE
Edificio Ochoa
500 Tanca Street, Suite 301
San Juan, Puerto Rico 00901-1922
Tel.: (787) 729-7444
Fax: (787) 729-7449
Email: julio.guzman@usdoj.gov
About American Agencies
American Agencies Co., Inc. and New Steel, Inc., manufacturers of
steel structures, filed Chapter 11 bankruptcy petitions (Bankr. D.
P.R. Case Nos. 15-07088 and 15-07090, respectively) on Sept. 15,
2015. The petition was signed by Omir Mendez as president.
The Debtors sought substantive consolidation of their cases under
Lead Case 15-07088.
C. Conde & Associates represents the Debtors as counsel. Doris
Barroso Vicens, CPA, at RSM ROC & Company, serves as the Debtors'
accountant.
MINI MASTER: To Seek Confirmation of Reorganization Plan Dec. 15
----------------------------------------------------------------
Mini Master Concrete at a hearing on Dec. 15 at 9:00 a.m. will ask
the U.S. Bankruptcy Court for the District of Puerto Rico to
confirm its reorganization plan that promises to return 100 cents
on the dollar to secured creditors and a 5% recovery for unsecured
creditors.
The Bankruptcy Court held a hearing on the adequacy of the
information in the Disclosure Statement on Sept. 16.
On Oct. 19, the Debtor filed an Amended Disclosure Statement and
an Amended Plan.
On Oct. 23, Judge Mildred Caban Flores entered an order approving
the Amended Disclosure Statement and scheduling a Dec. 15 hearing
to consider confirmation of the Plan. Objections to confirmation
of the Plan are due 14 days prior to the hearing.
The Reorganization Plan
Mini Master Concrete filed with the U.S. Bankruptcy Court for the
District of Puerto Rico a proposed reorganization plan that
proposes to fully pay secured creditors through a transfer of
certain properties and monthly installment payments over a
360-month period, and return 5% to unsecured creditors through 60
consecutive monthly installments.
The estimated percentage recovery for claims and interests are:
Projected
Claim/Interest Amount Impairment Recovery
-------------- ------ ---------- --------
Class 1 - Secured
Claim of Economic
Devt. Bank of P.R. $4,061,649 Impaired 100%
Class 2 - Secured
Claims of GE Capital
Corp. of P.R. $1,733,989 Impaired 100%
Class 3 - Secured
Claim of ESSROC San
Juan, Inc. $279,919 Impaired 100%
Class 4 - Holders of
Gen. Unsecured
Claims $3,492,658 Impaired 5%
Class 5 - Interests N/A Unimpaired N/A
EDB's claim will be partially paid on or before the Effective
Date, by the transfer of two properties. The balance of EDB's
secured claim, for $3,246,649, will be paid over a 360 months
period, through equal monthly installments of $14,130, including
principal and interest at 3.25% per annum, until the full payment
thereof.
As to Class 4, holders of allowed general unsecured claims,
excluding the claim of The Estate of Victor S. Maldonado Davila
and the claim of Ms. Bess M. Taylor Mitchell, who will not receive
any dividends, in excess of $40,000 will be paid in full
satisfaction of their claims, 5% in cash, through 60 equal
consecutive monthly installments of $2,580 commencing on the
Effective Date and continuing on the 30th day of the subsequent 59
months. Holders of allowed general unsecured claims of $40,000 or
less, will be paid in full satisfaction of their claims 5%
thereof, on the Effective Date.
A copy of the Amended Disclosure Statement dated Oct. 19, 2015, is
available for free at:
http://bankrupt.com/misc/Mini_Master_304_Am_DS.pdf
The Debtor is represented by:
Charles A. Cuprill-Hernandez
CHARLES A. CUPRILL P.S.C. LAW OFFICES
356 Fortaleza Street, Second Floor
San Juan, PR 00901
Tel: 787-977-0515
Fax: 787-977-0518
E-mail: ccuprill@cuprill.com
About Mini Master Concrete
Mini Master Concrete Services Inc. was incorporated under the laws
of the Commonwealth of Puerto Rico in June 1972 and was primarily
engaged in the processing, production and sale of ready-mixed
concrete. Mini Master was founded by the late Eng. Victor S.
Maldonado when he learned that a competitor had established a
plant to control the quality of concrete served on site.
In May 1977, Master Aggregates Toa Baja Corporation was
incorporated under the laws of the Commonwealth of Puerto Rico.
By that time, local tax incentives were in place for the
production of sand, a scarce natural mineral in Puerto Rico.
Master Aggregates commenced operations by grinding stone to
produce sand at its plan in Toa Baja, Puerto Rico.
Mini Master Concrete Services, aka Mini Master aka Empresas
Master, and affiliate Master Aggregates sought Chapter 11
bankruptcy protection (Bankr. D.P.R. Case Nos. 13-10302 and 13-
10305) on Dec. 11, 2013, in Old San Juan, Puerto Rico. The
petitions were signed by Carmen Betancourt, president.
Master Aggregates disclosed $11,125,939 in assets and $10,148,437
in liabilities.
On Jan. 9, 2014, Mini Master and Master Aggregates filed motions
for the substantive consolidation of their Chapter 11 cases, with
Mini Master as the surviving entity, which were granted on Feb. 5,
2014. The companies were also merged at the Department of State
of Puerto Rico, effective April 1, 2014.
================================
T R I N I D A D & T O B A G O
================================
POWERGEN: Confirms Port of Spain Power Plant Closure After Dec. 31
------------------------------------------------------------------
Sue-Ann Wayow at Trinidad and Tobago News reports that the Power
Generation Company of Trinidad and Tobago Limited (PowerGen) has
confirmed that its Port of Spain Power Plant will no longer be
functional after December 31.
PowerGen also confirmed in a news release that all its employees
received Voluntary Separation of Employment Program (VSEP),
according to Trinidad and Tobago News. PowerGen has three plants
in Port of Spain, Pt Lisas and Penal, the report relays. Its head
office is in Port of Spain.
The report notes that the release stated: "From January 1, 2016,
no power will be required from the Port of Spain Power Plant as
mandated in the revised power purchase agreement between PowerGen
and T&TEC (which was signed on December 5, 2014). As such, the
Port of Spain Power Plant will be closed and consequentially
staffing levels will be reduced."
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.
Copyright 2015. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-362-8552.
* * * End of Transmission * * *